Ground Transportation Prices Are Rising For International Car Shippers in 2018

Rates on nationwide auto transport have continued to increase since the last time we covered the topic. New logging requirements and driver shortages are driving the cost of transporting cars within the US higher than ever before.

Here are the 8 reasons why ground transportation is getting more expensive in 2018.

1. Electronic Log Books

There's a new law in effect for truck drivers that requires them to electronically log the hours they drive. Go over those hours and you get a fine. This keeps truckers from working overtime and taking on additional jobs. It also limits the time they can spend on each pickup and delivery. Therefore, it drives up costs further and limits flexibility when collecting vehicles for shipping overseas. It really limits what a single driver can do during the day and the number of cars they can collect and deliver. This results in an even greater shortage of drivers available to collect your cars.

2. Truck Driver Shortage

According to the American Trucking Association, there is currently a shortage of 30,000 truck drivers. There is simply not enough experienced truckers to fulfill the huge market demand. 

3. Classic Cars Ain't Easy

Most car carriers want to avoid taking on the responsibility of transporting classic cars. Classic cars require extra attention and care. They may also not start when they need them to. While there are drivers that we work with nationwide that are happy to give classic cars the attention they deserve, they also ask for a larger budget to get it done.

4. Improved US Economy

With the US economy improving, consumers have more money to spend on goods. As trucks haul more than 69 percent of freight in the US, any improvement in the economy leads to an uptick in trucking demand.

5. Port Congestion

As more international car shippers re-route their cars from the ports of Los Angeles and Long Beach, the availability of ground transporters is running even lower on the West Coast.

Read More About Congestion at Port of Los Angeles Hits Record High - Ship through Oakland

6. The Holiday Seasons

The peak demand for trucking is in the fall and winter, where the majority of goods are moved for the holidays. This holiday season shoppers spent more money than ever before. Shopping was up 4% to the tune of $616 billion, the highest level since 2011. With a record year, companies needed more freight moved than ever before. 

7. Colder Weather

We already know that seasonal variations affect car shipping, and this winter is no different. Once the cold sets in the Northern states, many truck drivers return to the South to avoid the unfavorable weather. Those that stay get to face the slow and dangerous winter conditions on the roads. Transport becomes slower and more expensive for car shippers.

8. Diesel Prices Aren't Dropping As Fast As Gas

While oil and gas has fallen so drastically, the price of diesel is remaining steady due to the current market. Since diesel is a distillate fuel, it is derived similarly to home heating oil and lower-sulfur fuel. For that reason alone it is affected by various external factors. During the winter, Northern states begin to use home heating oil to heat their homes.. And new legislature is also affecting prices by requiring marine vessels in US waters to switch from bunker fuel to lower-sulfur fuel. As demand for each of these fuels grows, it strains the supply of diesel.

Read More About Choosing a "One Stop Shop" When Shipping Cars Overseas